AS Tallinna Sadam (TSM1T) Q2 2024 earnings summary

Executive summary

• Cargo volumes stabilized in Q2 2024, with ro-ro and container segments growing, liquid bulk declining, and passenger numbers rising by 2.4% to 3.6 million.

• Secured major contracts: ferry service for 2026–2033, Botnica summer charters with Baffinland and BP, and a methanol-powered container ship at Muuga.

• Implemented cost-saving measures, reducing employee count by 6%, and improved profitability.

• Paid out dividends and signed a €20 million unsecured loan agreement with Swedbank for investments.

• Resolved key court cases positively, with one ongoing dispute involving former board members.

Financial highlights

• Q2 2024 revenue increased by 10% year-over-year to €31.7 million; 6M revenue up 4.2% to €59.6 million.

• Adjusted EBITDA rose 27% in Q2 to €14.9 million; 6M adjusted EBITDA up 9.2% to €27.6 million.

• Operating profit up 55.1% in Q2 to €8.9 million; 6M operating profit up 26.9% to €15.9 million.

• Q2 profit reached €4.1 million, a 200% year-over-year increase; 6M profit up 31.5% to €9.3 million.

• Investments in 6M 2024 totaled €25 million, up 307% year-over-year.

Outlook and guidance

• Passenger business expected to continue recovering, with potential to reach pre-pandemic levels.

• Continued interest in ro-ro and container lines, with new routes and offshore wind farm base harbour projects planned.

• Real estate development and state shareholding reduction preparations underway, with possible changes in 2025 or 2026.

• European Commission approved €15.4 million in funding for the TWIN-PORT VI environmental project.